The following information pertains to Grumpy Company's defined benefit pension plan:Pension asset as of 1/01/18 $ 4,000
2018 service cost $38,000
2018 interest cost $76,000
2018 prior service cost amortization $12,000
2018 expected return on plan assets $44,000
2018 plan asset contributions $80,000
Unamortized prior service cost as of 1/01/18 $48,000
Required:
Calculate the pension expense for the year ended December 31, 2018.Prepare the journal entry to record the pension expense for the year ended December 31, 2018.
What will be an ideal response?
1. Pension expense:
| Service cost | $ | 38,000 | ||
| + Interest cost | 76,000 | |||
| + Prior service cost amortization | 12,000 | |||
| - Expected return on plan assets | (44,000 | ) | ||
| Pension expense | $ | 82,000 | ||
| Pension expense | 82,000 | |||
| Pension asset (liability) | 10,000 | |||
| Cash | 80,000 | |||
| Other comprehensive income | 12,000 | |||
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